Taxes in Peoria
Peoria residents pay Arizona's real, flat 2.5% state income tax alongside a comparatively low effective property tax rate and a genuinely higher, more location-dependent combined sales tax rate than some other Arizona markets in this dataset -- disclosed honestly rather than assumed uniform.
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Learn moreArizona's flat state income tax -- real, not zero
Arizona has taxed individual income at a single flat 2.5% rate since tax year 2023 -- the lowest flat rate of any US state that taxes income at all, but a genuine, ongoing cost, not a no-income-tax situation. This applies to Peoria residents exactly as it does statewide; see arizona.js for the fuller multi-year phase-down history.
Peoria's comparatively low, but source-disputed, effective property tax rate
The City of Peoria's own FY2026 total property tax rate is $1.44 per $100 of assessed value, described by the city's own Truth in Taxation notice as unchanged year-over-year. Converted to an effective rate against home value, sources disagree between 0.50% (median $2,161 annual bill on a $429,400 home) and 0.46% -- both disclosed rather than reconciled, though either figure places Peoria below the ~1.02%-0.91% US national figures cited across sources, and broadly (though not identically) in line with Gilbert's separately-cited 0.47% rate.
A genuinely higher, more location-dependent combined sales tax rate than Gilbert's
Peoria's combined sales tax rate ranges roughly 8.1%-9.3% depending on the specific taxing district within the city -- multiple sources confirm a 0.5-percentage-point city tax increase effective July 2025 (from an 8.6% to a 9.1% combined baseline in one reading). This was independently verified as Peoria-specific per this research pass, rather than assumed to match Gilbert's separately-researched 8.3%-8.55% range -- a real, disclosed, and meaningfully higher local tax burden on everyday purchases.
No local personal income tax on top of the state rate
Arizona has no local (county or city) personal income tax layered on top of the state's flat 2.5% rate -- a genuinely simpler income-tax picture than states with local income taxes, though the city's own sales and property tax layers still apply as described above.
Key takeaways
- Arizona's flat state income tax is 2.5% (since tax year 2023) -- the lowest flat rate of any income-tax state, but a real, ongoing cost, NOT a no-income-tax situation. This dataset never frames Arizona as tax-free on income.
- Peoria's effective property tax rate is cited at 0.46%-0.50% depending on source (disclosed rather than reconciled), with the city's own FY2026 nominal rate unchanged year-over-year at $1.44/$100 assessed value.
- Peoria's combined sales tax rate (roughly 8.1%-9.3% depending on taxing district, following a July 2025 city tax increase) is independently verified as genuinely higher and more location-dependent than Gilbert's separately-researched 8.3%-8.55% range in this same dataset build.
- No local personal income tax layers onto Arizona's flat state rate for Peoria residents -- a genuinely simpler income-tax structure than states with local income-tax layers.
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